Q Your report - The Deloitte Real Estate Partners Predictions 2012 - makes pretty depressing reading if you're invested in the property market. The only positive feature seems to be length of time the market has been depressed - you predict that someone, eventually, will be brave enough to take a punt on it. Is there really no other reason to consider property as an investment in 2012? A: It's not entirely devoid of hope, and there are some notable positives out there, but overall we do expect retrenchment in the property sector this year. You have to remember the property investment market had experienced quite a rebound from its substantial collapse two to three years ago, to the point where it now realistically reflects the fundamentals of property investment. However, there is still a squeeze on available finance which is likely to bring greater cost to the sector, so investment pricing is expected to slip back.

Q: You're predicting falling commercial property prices but what about rental? A: Given the restricted development pipeline on new Grade A office buildings in both Glasgow and Edinburgh, we might see some rental growth as tenants clamour for limited office space options. Aberdeen continues to buck the UK position, with city centre rents showing strong performance, reflecting the lack of supply. In these markets we would expect to see entrepreneurs taking calculated positions at some point during 2012.

Q: You believe the Energy Act is going to catch landlords unaware. Why, and what will be the repercussions on the market? A: Our feeling is there still isn't a great level of awareness around how landlords are going to be affected by the new legislation. Many people have jumped to the easy conclusion that the legislation suggests that from 2018 landlords will not be able to let properties which fall below the E rating for energy efficiency - currently about 20 per cent of the market. For those holding F&G rated properties, the first thing to do is understand the reason for the poor rating - it could easily be something as simple as a superficial energy assessment. In cases where the rating is robust, properties need only be improved to the extent that improvements deliver a greater financial benefit than they cost.

Q: In the residential housing market you're predicting growing demand which cannot be satisfied at current prices and with the current shortage of mortgage finance. Presumably unsatisfied buyers will be driven to the private rental sector? A: That seems the most likely outcome. First-time buyers either don't want to pay the high costs of the few mortgages they can obtain, or aren't able to secure a mortgage at all so we'd expect demand for private rented accommodation to increase.

Q: Finally, how different is the Scottish outlook from that of the rest of the UK? A: Generally speaking there isn't any great divergence between Scotland and the rest of the UK. With the exception of London and the North West, the outlook for Scotland is broadly similar to the other UK regions - we don't expect anything other than fairly low levels of growth. ? Alasdair Ramsay is the partner in charge of Drivers Jonas Deloitte in Scotland and has extensive experience in property investment covering the retail, office and industrial markets throughout Scotland.